Do you have a child with a severe disability, or know someone who has a child with a severe disability? If so, the following information can help protect that child’s financial future.
As a parent, you are all well aware of the financial challenges that may face your children when you are no longer here to care for them, so knowing that your estate’s assets could reduce their pension, or that they could lose it altogether along with the other non-monetary benefits that attach to the pension, is a bitter pill to swallow.
On your death, will any of your children with a severe disability inherit more than $340,000? If so, you should consider making a Will containing a Special Disability Trust for that child.
The current Centrelink assets test limit for a single non-home-owner pensioner is $339,250 so if your child holds any assets over this amount, it will result in a reduced pension.
However, assets up to a value of $609,500 (indexed each year) held in a Special Disability Trust are exempt from the Centrelink assets test.